Forex: Weak UK budget forecasts further weaken the Euro

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The Chancellor of the Treasury department presented UK’s economic forecasts for the next year. A lower growth forecast and higher borrowing targets from 2011/12 to 2014/15 were the key announcements of this presentation. Following this announcement of bearish news the sterling dropped to the day’s low against the US dollar of 1.6218. Stop losses level at 1.6200 were reported to have been used by many traders.

Under economic budget presentation key figures such as future growth forecasts and projected borrowings. Under normal conditions bullish news will be associated by bullish currency behavior. The GBPUSD pair is currently traded at 1.6233.